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Ron Moorse Special TIF Legislation for TCAAP October 15, 2008 Page 3 beneficial to the City to offset operational costs of the district, rather than being made available to the development right away (this will be reviewed as part of the is financial/resource study to determine the best option for the City and the development). d. The City may not establish a hazardous substance subdistrict within the TCAAP Site. Under current law, if you have a polluted site that meets certain criteria, a City may establish a hazardous substance subdistrict. What this allows is for the City to capture 100% of the taxes generated from the site to assist in paying for costs associated with remediating the site, rather than allowing the City to only capture the increased tax value from the new development to be available to pay these costs. As you are aware, the City intends to utilize the base tax value to assist in paying for any increased costs for City operations related to TCAAP (police, fire, snow plowing, etc). e. Extend the term of the district to 30 years after the receipt of the first increment rather than 25 years. This is to provide the City a safe harbor to make sure it will be able to pay for the obligations it agrees to. It should be noted that by setting the term to 30 years that it does not guarantee that the City will grant the developer 30 years of increment (the amount and duration of assistance is set in the Development Agreement), it only provides the City flexibility in meeting obligations it deems appropriate. 4. Why are we looking at creating special legislation at this time? As you know, there is a legislative process we have to follow. In order to meet committee deadlines and have the legislation introduced we need to start the process now. By moving forward with this concept, it allows staff to meet with the local elected delegation to discuss it with them and their support or authorship of the bill. In addition, it allows the City time to meet with key committee chairs and members to discuss the legislation prior - to its introduction in both the houses. 5. What is the likelihood of the legislation being approved? We can never guarantee what the current legislature will or won't approve. However, staff did meet with Joel Michael of House Research to obtain an initial read on the potential request and he did not see anything that would raise a"red flag" since many of the terms of the special legislation have been granted to other cities and projects over the past several years.